Why do I need to set up tax rates in Prepsheets?

Prepsheets uses your tax rates to separate the VAT or tax portion of a selling price from your margin. Whatever the tax is called in your jurisdiction, until you enter your rates margin figures look higher than they really are because the tax hasn't been taken out. New accounts start with no rates, so adding them is one of the first setup steps.

How do I add a VAT rate in Prepsheets?

Go to Settings then Tax Rates, click New Tax Rate, enter a name and the rate percentage, and click Save Tax Rate. Add one rate for each band you use.

What VAT rates should a hospitality business set up?

It varies by country, but Irish hospitality businesses typically add a hospitality rate (9%), a standard rate (23%), a zero rate for cold takeaway food, and a reduced rate where it applies. Check the exact bands with your accountant or tax authority.

Help Centre › Company Setup

Set Up Your VAT / Tax Rates

⏱ About 3 minutes · Part of setting up your company

Prepsheets uses your tax rates to work out the real margin on every recipe. New accounts start with no rates set, so this is one of the first things to do — otherwise a recipe's selling price won't reflect the VAT or tax you actually have to include in it. You add each rate once, then apply it to any recipe.

Why do I need to set up tax rates?

When you price a dish, part of the selling price is VAT or tax (whatever it's called where you are) that goes to the tax authority in your jurisdiction, not margin you keep. Until you tell Prepsheets your rates, it can't separate the two — so your margin figures will look higher than they really are. Setting your rates makes every recipe's cost, tax and margin breakdown correct.

How do I add a tax rate?

Go to Settings and open Tax Rates.
Click + New Tax Rate.
Give it a Name and a Rate (%), then click Save Tax Rate.

The New Tax Rate dialog with a name and rate percentage

Add one rate for each band your business uses. For an Irish hospitality business that's typically:

Hospitality Rate — 9%
Standard Rate — 23%
Zero / cold takeaway food — 0%
Reduced Rate — the reduced band where it applies

The Tax Rates list showing the hospitality and standard rates saved

Tip: Rates vary by country and can change — check the bands that apply to your business with your accountant or tax authority. Prepsheets simply applies whatever rates you enter.

How are tax rates used?

Once your rates exist, each recipe has a Tax Rate selector in its overview. Pick the right band and Prepsheets recalculates the split between tax and margin, and shows both your tax-inclusive and tax-exclusive selling price. See creating and costing a recipe for how this plays out.

Next: create and cost your first recipe

With your rates in place, build a recipe and watch the margin work out in real time.

Read the guide →